builders outlook may 2011
DESCRIPTION
The official publication of the El Paso Association of BuildersTRANSCRIPT
Editor’s note: The home construction
industry has been suffering a serious
problem with construction loan financing
because of mixed signals from Federal
Regulators. On the one hand local banks
have ample supply of money to loan but
regulators have been refusing to allow them
to loan above a set quota in order to
“maintain a preferred portfolio ratio”.
Housing is a key factor in getting the
recession fixed according to industry and
financial professionals, yet the lack of AD &
C credit has stifled growth and the economy.
On August 10 the El Paso Association of
Builders will host a general meeting with
Larry Patton, President and CEO of Bank of
the West and a member of the Dallas Federal
Reserve as the speaker. Mr. Patton will
provide insight into this topic and more
during the luncheon at the El Paso Club. For
information on that event contact the EPAB
at 915-778-5387.
The National Association of HomeBuilders (NAHB) applauded Rep. GaryMiller (R-Calif.), Rep. Brad Miller (D-N.C.)and 29 other original cosponsors forintroducing bipartisan legislation aimed atrestoring the flow of acquisition,development and construction (AD&C)credit to the housing sector to help spur jobgrowth, support a recovery in the housingmarket and keep the economy movingforward.
"We commend Reps. Gary Miller andBrad Miller for championing a legislativesolution aimed at ending the freeze inhousing production credit that has forcedcountless home building firms across thenation to shutter their doors, resulting in
grave repercussions for job growth and theoverall economy," said NAHB ChairmanBob Nielsen, a home builder from Reno,Nev.
The credit crunch has taken an enormoustoll on the nation's economy, with job lossesfelt most acutely in the housing sector, wheremore than 1.4 million construction workershave been idled since 2006. Factoring in theeffect of the housing plunge on industriesthat provide materials and services to homebuilders, the total impact of the housingslump has been the loss of more than threemillion jobs and $145 billion in wages in allhousing-related industries.
H.R. 1755, the Home ConstructionLending Regulatory Improvement Act of2011, would address specific regulatoryobstacles to the credit needs of the nation'shome builders.
In a letter to fellow lawmakers seekingsupport for their bill, Reps. Gary Miller andBrad Miller said that "one of the majorreasons for this lack of credit is the overlyrestrictive actions by banking regulatorswhich have hindered federal and statechartered banks and thrifts' ability to makeand maintain loans to qualified small homebuilders that have viable projects."
To rectify this situation, the legislationwould grant authority and guidance tofederal and state banking regulators to ensurethat financial institutions that providefinancing to America's home builders arepermitted to make loans, restore liquidityand provide stable financing to theresidential housing sector.
In other news Reuters correspondentCorbett B. Daly reports that a bill to create a
new market for financing mortgages wouldhelp wean the $10.6 trillion U.S. mortgagemarket off government support advanced inthe House of Representatives in early May.
The House Financial ServicesSubcommittee on Capital Markets andGovernment Sponsored Enterprisesapproved the legislation on a voice vote.
The bill, which the White House supports,would have to be approved by the fullcommittee, the full House and the Senatebefore being sent to President Barack Obamafor his signature into law. The bill aims toestablish a market for covered bonds, whichare securities issued by banks and backed bypools of loans.
The loans underlying the covered bondswould remain on the issuer's balance sheet.That is different from the current U.S.mortgage system, in which lenders sell manyof the loans they make to government-sponsored Fannie Mae (FNMA.OB) andFreddie Mac (FMCC.OB), which thenrepackage them as securities for investors.
The government seized Fannie Mae andFreddie Mac in 2008 as losses on the loansthey held spiraled.
The government, through Fannie Mae,Freddie Mac and the Federal HousingAdministration, now backs almost nine in 10new mortgages.
In Europe, covered bonds have long beenin use. But they have failed to catch on in theUnited States.
In a covered bond system, banks canborrow against the value of the underlyingmortgages to obtain fresh capital to extendfurther loans. The bond investors have theright to those underlying assets in the case ofa bank default.
The Federal Deposit InsuranceCorporation has warned that a covered bondsystem could put its bank deposit insurancefund at increased risk for losses because theinvestors would have seniority over theagency in the event of default. (For Reuters,Corbett B. Daly)
Issue 5 2011 Building El Paso’s tomorrow today
Builders OutlookP
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NAHB supports legislation addressing
housing lending crisis
The El Paso Association of Builders isholding their June 10 meeting in Las Vegas,NV. and cordially invites all memebrs tojoin in on a fun filled weekend.
“It’s designed as a get away with a mix ofbusiness as we come together for some goodtimes away from the daily routine of runninga business. We are using Sun Travel to bookour trip which includes flying out onSouthwest and then staying at the fabulousParis Hotel, deep in the heart of the Vegasstrip! The Paris is our headquarters butthere’s a great selection from the Wynn to
Bellagio waiting for you! Just let Sun Travelknow your preference,” said Executive VicePresident Ray Adauto
There’s a lot to do in Vegas and it wasannounced last week that Paul McCartney isin concert on Friday June 10 at the MGMarena. Now that’s going to bring a lot offolks into town for sure. If you’re not aMcCartney fan, then maybe one of thedozens of regular shows like the Jerseyboys, Elvis, or Cirque du Soleil is more yourcup of tea. Great golf, and great dining,exceptional gambling. Our meeting is
scheduled for Saturday, June 11 at the Paris,place to be determined. We’ll have fun andsome adventure but most of all we want youto be a part of this inaugural trip.
With your help it could become an annualevent!
If you’re interested in finding out morecontact Isabelle Caballero at Sun Travel,747-3055. We’ll see you in Vegas June
10th!
EPAB meetingset for Las VegasWho: El Paso Association of
BuildersWhat: General Membership MeetingWhere: Las Vegas, NVWhen: June 10-12, 2011Info: 778-5387
“One of the major reasons forthis lack of credit is the overlyrestrictive actions by bankingregulators which have hinderedfederal and state chartered banksand thrifts' ability to make andmaintain loans to qualified smallhome builders that have viableprojects."
Rep. Gary Miller
(R-Calif.)Brad Miller
(D-N.C.)
Springtime is here and for those of you
who missed it our annual spring golf
tournament was Tuesday April 10th. I’d like
to thank our golf committee of John Chaney,
David Bogas, Eric Lowenberg and Sam
Shallenberger, and staff Ray Adauto, Angie
De Luna and Margaret Adauto for putting on
another top notch golf tournament again this
year. I’d also like to especially thank our VIP
Sponsors: All Precision Sheetmetal Works,
Goff’s Appliance and TV, Interceramic Tile
and Stone Gallery, and Tropicana Homes.
Lastly I’d like to thank all those who
volunteered to help out and participated in the
tournament. Together we met our goal for
our Association budget. While fund raisers
are not the reason for our existence they sure
do help make it easier to pay the bills so we
can focus on the issues that affect our
industry.
Speaking of issues that affect our industry,
in the past month our City Council tried to
implement a few so called “smart growth”
changes that would have devastating impact
on the future of home building in the City of
El Paso. The particular items of concern was
a front build-to line that was to be mandated
on every subdivision plat, and a requirement
for the garage to not be further forward than
the front door of the house. These changes
would have essentially made millions of
dollars worth of floor plans owned by every
builder in El Paso obsolete. It also would
have made it impossible to build on cull de
sac lots, and would have severely limited the
building envelope on which a house can be
placed on smaller more affordable lots.
Luckily for us our Association was there.
With the help of the Greater El Paso Chamber
of Commerce we were able to bring these
issues to light for City Council and City staff,
and fortunately we were able to get these
items removed. Myself, Ray Adauto, and
numerous others from our association banded
together on these issues. This was a perfect
example of the meaning of the EPAB and
what we can accomplish when we work
together. To list all the names of those who
helped on this would take up too much space
so I’d just like to send a debt of gratitude on
behalf of our entire industry to all of you who
chipped in on this effort. And I’d especially
like to acknowledge our Government
Relation Council – chaired by Edmundo
Dena, and our Land Use Council – chaired by
Linda Troncoso and Sal Masoud.
Because of proposals like the one
mentioned above, I’d like to remind everyone
how important it is to vote in the upcoming
City Council elections. Early voting is May
2nd-10th and Election Day is May 14th. I’d
like to encourage everyone in our industry to
vote, but most importantly I want to
encourage everyone to listen to what the
candidates are saying and get out and vote for
candidates who support our industry.
Lastly our Associates Council is setting up
a trip to Las Vegas June 10-12! Don’t miss
this opportunity to join us in Vegas for the
first general Vegas meeting at the fabulous
Paris Hotel on the strip. Sam and Ray have
been working hard to make sure we all have
a good time getting away from the daily
drudge and enjoying great food, fun, and
shows. Our travel agency is Sun Travel and
you can book your trip through them by
calling Isabelle at 915-747-3055 or Kathleen
at 915-731-3222. Tell the ladies at Sun Travel
you are looking to book the Builders
Association trip. I look forward to seeing you
there. Until next month have a great May.
Greg
Bowling
President,
El Paso Association
of Builders
President’s Message
Builders Outlook3
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Early voting is May 2nd-10th and Election Day is May 14th. I’d like to
encourage everyone in our industry to vote, but most importantly I want to
encourage everyone to listen to what the candidates are saying and get out and
vote for candidates who support our industry
Nothing is as important to our industry
this month than getting out the vote for
city council, school district or bond
issues. It is your responsibility to vote
and to ensure that the vote is for
candidates that understand your industry
and will work with us. Nothing is as
damaging as having a city council who
constantly fights growth, implements
narrow sighted codes, or damages small
business. We have had too many years of
exactly that and it’s time for a change.
For sure we will have at least two
absolutely new city councilors on board
in June, and there’s a potential that one
more may come from the field. But
nothing is certain because sometimes we
seem to favor a candidate based upon
whether or not they invite us to a cocktail
party rather than to the table. Your vote
is crucial to ensuring that homebuilding,
and in turn the vendors, are working in El
Paso. Go vote. Get your employees and
family to vote. Do it for yourself, do it
for your industry. It’s important.
The news of the killing of Bin Laden
rocked the world on Sunday night May 1.
It was news that came after nearly 10
years from the WTC towers destruction
and the murder of thousands. It came
after nearly 12 years after the USS Cole
was blown up and dozens of sailors were
lost. It came after a world campaign
against this snake and his evil doers that
has cost trillions of dollars and tens of
thousands of lives both in the military
and civilian camps. One individual
represented evil to this generation much
like Hitler did to my parent’s generation.
No one can fully understand or
comprehend the vile that such a serpent
dispensed, all in a demonic call for holy
war against the United States. By the
time you read this perhaps more
information on the how and when will
come out about the actual details.
This much we know as of this writing:
Navy SEALS swept into a compound
inside Pakistan with a pretty good idea
that someone of high target value was
inside. The two copters went over a large
wall, one landed and the other had the
SEALS drop in on a high speed drop
line. All were met with gunfire and in the
ensuing moments one of the choppers
malfunctioned and crashed inside the
compound.
Apparently there were no casualties on
the SEALS side while Bin Laden was
killed by a bullet to the head while
shielding himself with a woman. Bin
Laden’s body was taken on board the
remaining chopper and all the SEALS
boarded and extricated themselves out of
the compound to a safe landing area,
where one must assume other aircraft
came in and safely moved the combined
force and the body to awaiting ships.
The firefight we have been told lasted 40
minutes. The planning was done over
three days after nearly four years of
intelligence gathering. Our hearts and
prayers go out to the intelligence
community and the entire military for
their dedication and focus on ridding the
world of such evil. We will never know
the names of all who were involved but
we send out gratitude for what you have
done. It is without a doubt a proud day to
call ourselves American’s and a great day
to salute our heroes.
Speaking of heroes let me just say a
little something about some of our own
heroes. Ironically on the weekend that
Bin Laden is killed the EPAB
participated in a build for Homesforour
troops.org and Marine Corporal Dan
Gasca. He had lost both legs in Fallujah,
Iraq back in 2008 and even though he’s
going through rehab he still calls El Paso
home. Homesforourtroops.org organized
the effort to build a home for the Gasca
family over on the Westside of town.
Contractor Omar Veliz of Veliz
Construction is the GC and on Friday,
March 29 there was a rising of the frame
held at his new home. We had Cisco
Homes and Tropicana Homes provide
some framers who joined about a
hundred others in doing the work over
the weekend. The organization still
needs a number of items including more
workers to work on interior and roofing.
Now it can be said that there is a lot of
need in this community as there is in any
community. What’s important is that this
project is already underway and needs
help getting completed. Watching the
hundred or so volunteers help on the
project and listening to Omar Veliz give
testimony as to why he’s committed to
this effort really was heart tugging. I am
asking all of you to look at giving an
hour or two, or helping with your
expertise or with your wallet, or simply
offering prayer for our local heroes who
go out and do extraordinary things
everyday. You can log onto
homesforourtroops.org and search El
Paso for more information on the local
project. Thank you once again to Veliz
Construction, Cisco Homes and
Tropicana Homes. Way to go.
Changes in the world, our community underline theimportance of voting
Perspective
Builders Outlook4 MAY 2011
Ray Adauto,
Executive
Vice President
EPAB
Send us your comments.
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4655 Cohen • El Paso, Texas • 79924 • 915-821-3550 • www.tropicanahomes.com
A tradition of Excellence for over 60 Years
With sixty years of experience and over10,000 quality homes built in El Paso,Tropicana Homes has become a namesynonymous with quality construction. Asthey continue to grow and expand,community involvement remains a toppriority. Their commitment to the industryand community has made TropicanaHomes the premier builder in El Paso.
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Builders Outlook 5MAY 2011
Last month, I participated in several
ribbon cutting ceremonies at
Chihuahuita Community Center,
Casitas del Norte Apartments, and
Colonia Verde Park to celebrate the
accomplishments that the federal
Community Development Block Grant
(CDBG) Program has made for the El
Paso community.
CDBG is one of the most important
federal grant programs on which cities
like El Paso depend on, because it
provides funding that gives
communities the flexibility to allocate
resources to neighborhoods with the
greatest needs. The program is
administered by the U.S. Department of
Housing and Urban Development
(HUD). Projects funded under CDBG
include parks, street and drainage
improvements, public facilities,
housing, and essential social service
programs. Since 1975, over $347
million has been allocated to El Paso for
community projects.
This particular federal grant program
is vital to our community because we do
not have the same kind of property tax
base that other cities of our size and
larger have. Other cities like Austin,
Houston, Dallas, or San Antonio have
many corporations that pay millions in
property taxes that can be used to fund
local school districts, and community
infrastructure like parks and centers. In
El Paso, we do not have the same
number of large companies that add to
the value of our tax base, and as a result,
the burden often falls on homeowners,
and projects such as the Chihuahuita
Community Center, Casitas del Norte
Apartments, and Colonia Verde Park
often get put aside and take years to
materialize.
The Chihuahuita Community Center
is a key part of the Chihuahuita
neighborhood that gives residents a
positive place for recreational activities.
With the help of federal CDBG funds,
this center now has an expanded
meeting room for the neighborhood
with proper lighting, power and
computer outlets, new ADA compliant
restrooms and shower stalls, as well as
modern air conditioning and heating
systems.
The Casitas del Norte apartments is a
historic complex that was built in 1910.
Sadly, as a result from the flood in 2006,
this apartment complex was heavily
damaged by the flood and destroyed
many apartments. Thanks to federal
CDBG funds, 43 units at Casitas del
Norte Apartments have been renovated.
These units are available to families at
or below 60% of the area median
income for the city of the El Paso.
CDBG funds also helped restore
Colonia Verde Park by extending an
eight-foot pathway for walkers and
joggers, added picnic tables with shaded
canopies, and modified the park’s
irrigation system. These improvements
will benefit the estimated 3,700 people
that use the park’s services.
Over the last 35 years, El Paso has
received more than $347 million dollars
- an average of $10 million per year - in
CDBG funding that has been used to
fund numerous projects like these.
These are the kinds of programs that
make a real difference in our
neighborhoods that provide our kids
with a safe place to play sports, a place
to meet and to organize, and a place
residents can feel proud of calling
home.
Unfortunately, right now in Congress,
House Republicans want to balance the
federal budget on the backs of those
most in need, and are proposing to
drastically cut funding for this
important
Silvestre Reyes
US Congress
Guest Perspective
The Chihuahuita
Community Center is
a key part of the
Chihuahuita
neighborhood that
gives residents a
positive place for
recreational activities.
Celebrating newly completed projects, funding still needed
Builders Outlook6 MAY 2011
The chairman of the redistricting
committee released the proposed map of
redistricting for the state of Texas.
Although there were changes, the
boundaries for the five El Paso House
members remain relatively unchanged.
Before going further on redistricting, I
would like to commend Representative
Pickett's office for handling the
responsibility of drawing our maps. Eddie
Miranda, the Chief of Staff, did most of
the leg work tweaking maps after input
from members. It was not an easy task but
he did an excellent job of coordinating the
drawing for Representative Pickett.
With a lopsided majority, some were
fearful that the Republican majority was
going to draw maps that were
unreasonable. Had there been the
atmosphere of 2003 to 2007, the likelihood
of an unreasonable map would have been
greater. Chairman Solomons allowed the
delegations to design their boundaries.
That resulted in very few concerns.
As a matter of fact, before the map was
released, there were comments from some
of the more conservative members about
the process being too generous with
Democrats.
In the redistricting process, there
inevitably arises a situation where sitting
members are placed into the same district.
That is referred to as "pairing". There
were eight districts drawn that resulted in
pairings. Only one paired Democrats. The
other fourteen members were Republican.
The leadership put six newly elected
Republican members swept in by the
teaparty excitement into the pairing
process. Of those, only two are guaranteed
a district because the others are paired with
incumbents.
The proposed map also paired four long
time members. One pairing of members in
the panhandle won't be a contested race if
the plan remains the same. There has
already been an announcement by one of
leaving the legislature.
The other pairing of longtime members
is not one that is easily called.
The final pairing of Republicans
involves one member who switched
parties this past year. I will let you decide
who has the advantage in that race.
On Friday the fifteenth of April, the
Redistricting Committee had its first
hearing on the proposed boundaries.
There were a few members who discussed
concerns at the hearing. The members of
the southern Rio Grande area and
members in a certain Houston area
presented their concerns.
The longest testimony was given by the
Mexican American Legal Defense and
Education Fund(MALDEF). Their
concern was primarily creating more
Latino districts. The map they presented
also redrew the boundaries for the El Paso
delegation. I was not very pleased with
their El Paso County map. We have
requested information from them to
determine their reasoning. I think it is
important to address that issue because if
MALDEF succeeded in court, El Paso
County would not benefit.
The five house members of the El Paso
delegation contributed to the map
proposed by Chairman Solomons. If
MALDEF agrees to leave El Paso county
with the boundaries in that map, then there
will be no concerns if there is some
litigation against the statewide
redistricting.
Redistricting maps released, discussed
Chente Quintanilla
State Representative
Guest Perspective
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Builders Outlook 7MAY 2011
Mortgage rates at lows for yearPurchase-loan demand down 37% from a year ago
Mortgage rates dropped for the third
week in a row to their lowest point this
year on signs of economic weakness,
Freddie Mac said in releasing the
results of its latest Primary Mortgage
Market Survey.
Rates on 30-year fixed-rate
mortgages averaged 4.71 percent with
an average 0.7 point for the week
ending May 5, down from 4.78 percent
last week and 5 percent a year ago.
The 30-year fixed-rate mortgage hit
an all-time low in Freddie Mac records
dating to 1971 of 4.17 percent during
the week ending Nov. 11, 2010, and so
far this year has ranged from 4.71
percent in early January to a high of
5.05 percent in February.
Rates on 15-year fixed-rate
mortgages averaged 3.89 percent with
an average 0.7 point, down from 3.97
percent last week and 4.36 percent a
year ago. That's a new low for 2011,
but well above the all-time low in
records dating back to 1991 of 3.57
percent, set in November.
Mortgage rates dropped for the third
week in a row to their lowest point this
year on signs of economic weakness,
Freddie Mac said in releasing the
results of its latest Primary Mortgage
Market Survey.
Rates on 30-year fixed-rate
mortgages averaged 4.71 percent with
an average 0.7 point for the week
ending May 5, down from 4.78 percent
last week and 5 percent a year ago.
The 30-year fixed-rate mortgage hit
an all-time low in Freddie Mac records
dating to 1971 of 4.17 percent during
the week ending Nov. 11, 2010, and so
far this year has ranged from 4.71
percent in early January to a high of
5.05 percent in February.
Rates on 15-year fixed-rate
mortgages averaged 3.89 percent with
an average 0.7 point, down from 3.97
percent last week and 4.36 percent a
year ago. That's a new low for 2011,
but well above the all-time low in
records dating back to 1991 of 3.57
percent, set in November.
Rates on 5-year Treasury-indexed
hybrid adjustable-rate mortgage
(ARM) loans averaged 3.47 percent
with an average 0.6 point, down from
3.51 percent last week and 3.97
percent a year ago. The 5-year ARM
hit a low in records dating to 2005 of
3.25 percent in November.
Rates on 1-year Treasury-indexed
ARM averaged 3.14 percent with an
average 0.5 point, down from 3.15
percent last week and 4.07 percent a
year ago.
Looking back a week, a separate
survey by the Mortgage Bankers
Association showed demand for
purchase loans remained well below
last year's levels.
The MBA's Weekly Mortgage
Applications Survey showed demand
for purchase loans was up a
seasonally adjusted 0.3 percent during
the week ending April 29 compared to
a week ago, and down 36.9 percent
from the same time a year ago.
Requests for refinancing accounted for
62.7 percent of all applications.
In an April 14 forecast, MBA
economists said they expect rates on
30-year fixed-rate loans will climb to an
average of 5.6 percent during the final
three months of the year, and average
6 percent in the final quarter of 2012.
EPAB ON THE SCENE
MAY 2011
Senercon
Meeting
Senercon and Border Solar held a meeting at
the EPAB to present the latest information on the
new rules regarding Energy Star and the pro-
grams related to it. In the two hour presentation
Senercon President Javier Ruiz gave an update
on the recent changes and those proposed by the
EPA and the Energy Department for recognition
as and Energy Star builder or supplier. From the
discussions came a myriad of questions on
whether or not the current applications for
Energy Star status will be enough to satisfy the
future requirements. The answers were that the
changes made and those proposed will make it
much harder to qualify a home for Energy Star
status, and that along with the changes come
increased costs. Border Solar is the member
who installed the ten solar panels at the El Paso
Association of Builders offices, making the
EPAB the first home builders association in the
country to utilize the power of the sun to supple-
ment electric consumption.
find us on facebook:elpasobuilders
BUILD abetter socialnetwork!
THANK YOU TO OUR
2011 Golf Sponsors
The annual El Paso Association of Builders golf tournament was held
at Painted Dunes Desert Golf Course in April. Twenty eight teams
competed for bragging rites on the tournament. The event was coordi-
nated by the golf Committee headed up by David Bogas, Sam
Shallenberger, Eric Lowenberg, Ray Adauto and spearheaded by John
Chaney. The wind died down on the day of play to present the golfers
and volunteers some excellent weather. Traditionally the EPAB tour-
nament signifies the start of Spring for the Association and a season of
renewal. This year the great folks at Painted Dunes, including
Anthony Bellows and Mark Gonzalez, gave the golfers a challenging
course in pretty good shape. John Chaney was really excited about the
turnout and grateful for all the volunteers. “This is one of the most tra-
ditional tournaments in the area and the benefits it gives the EPAB and
Young Designer Awards goes on for the entire year,” Chaney said.
“I’d like to thank all the folks who came out to support the event and
provide us with a fun time once again,” he concluded. Greg Bowling,
President of EPAB was eaqually grateful. “We turn out to this event
every year, rain or shine, good times and bad, but this year it was extra
special to see as many of our members and their guests come out,” he
said. “I’d like to especially thank All Precision Sheet Metal,
Interceramic, Goff’s and Tropicana Homes for their sponsorship,
along with everyone else who bought carts, signs and hole sponsor-
ships. This is a sign of commitment to the association and our
Executive Board thanks you for that, “ Bowling continued.
First place went to Aztec Construction’s team of Spencer, Forcada,
Mora, Medrano, Jurado and Elgua. Second Place went to Tropicana
Homes headed by Greg Bowling and third went to Texas Gas team
with Captain John Reich.
Golf Tournament
News from the
Texas
Real Estate
Center
recenter.tamu.edu
Builders Outlook10MAY 2011
Texas
Outperforms
Nation in Job
GrowthBy Bryan Pope, Associate Editor,
Real Estate Center
COLLEGE STATION, Tex. (RealEstate Center) — When it came tocreating jobs, Texas outperformedthe rest of the country from February2010 to February 2011.
According to the latest MonthlyReview of the Texas Economypublished by the Real Estate Centerat Texas A&M University, Texasgained 230,000 jobs during those 12months. That’s an annual growthrate of 2.3 percent. Over the sameperiod, U.S. nonfarm employmentrose 1 percent.
The state’s private sector postedan annual employment growth rateof 2.5 percent compared with 1.5percent for the U.S. private sector.
The state’s seasonally adjustedunemployment rate was 8.2 percentin February 2011, unchanged from ayear earlier. Meanwhile, the nation’srate decreased from 9.7 to 8.9percent.
All Texas industries exceptfinancial activities and informationindustries had more jobs, and allTexas metro areas had more jobs.Petroplexes Odessa and Midlandranked first and second,respectively, in job creation followedby Longview and Dallas-Plano-Irving.
The state’s actual unemploymentrate was 8.2 percent. Midland hadthe lowest unemployment ratefollowed by Amarillo, Lubbock,College Station-Bryan and SanAngelo.
Despite job growth, existing Texassingle-family home sales inFebruary were down 10 percentfrom a year ago.
Just over 12,000 homes were soldthis past February according to thelatest Multiple Listing Services(MLS) data compiled by the Center.
The median home price was up 3percent from the previous year, at$145,800. There was a 7.2-monthinventory.
For more on the Texas economy,read the Center’s Monthly Review ofthe Texas Economy. It’s online athttp://recenter.tamu.edu/econ/. TheCenter’s website also includes thelatest housing data from 47 TexasMLS areas. It’s athttp://recenter.tamu.edu/data/hs/.
Weak Home Sales
Numbers Don’t Tell
Whole Story,
By Bryan Pope, Associate Editor, Real Estate
Center
COLLEGE STATION, Tex. (RealEstate Center) — Home salesstatistics are likely to paint a pictureof a weakening market through theend of 2010 and the first half of 2011.While it’s tempting to attribute thebleak numbers to a deterioratinghousing market, an economist withthe Real Estate Center at Texas A&MUniversity said that doesn’t tell thewhole story.
“The year-over-year decline inexisting home sales will be the resultof comparing months when there wasno tax credit with those from a yearearlier, when the tax credit wasartificially increasing sales,” said Dr.Mark Dotzour, the Center’s chiefeconomist.
The $8,000 tax credit for first-timehomebuyers went into effect inJanuary 2009 and was planned toexpire in November 2009. Homesales gradually started to increaseafter the tax credit was announced,after bottoming out in January at anannual rate just above 4.5 millionsales.
Existing home sales graduallyincreased in 2009 as buyers and realestate agents became more familiarwith the program. Sales topped anannual rate of five million in July 2009for the first time since September2008.
As the tax credit deadlineapproached, home sales spiked inSeptember, October and November2009. November 2009 was the peakat an annual rate of almost 6.5million.
The tax credit was extended late in2009 to include sales with contractswritten until April 30, 2010, andclosed by June 30 (extended toSeptember 30). Initial homebuyerresponse to this extension was tepid,but sales picked up substantially in
March, April and May 2010, whensales were up 18 percent, 28 percentand 18 percent, respectively, over thesame months in 2009.
Then the process reversed itself.Pending home sales fell dramaticallyin May 2010, the month after the taxcredits expired. This was followed bya significant drop in home sales inJune and July. In Texas, July 2010sales were down approximately 25percent from July 2009.
Dotzour said August figures maynot be much better since manybuyers purchased homes before thetax incentive expired.
“When you ‘bring forward’ salesthrough tax incentives, sales will belower after the tax credit ends,” hesaid.
Unless Congress creates a new taxcredit this fall, Dotzour said monthlysales for 2010 will likely exhibitsignificant variance from 2009, and atrue reading of housing marketconditions may not be possible untilJune or July 2011.
www.swher.com
5400 Suncrest Dr. C-6 El Paso, Tx. 79912
Ph. (915) 613-4168
Fx. (915-833-6437
SENERCONSouthwest Energy Conservation, LLC
www.energystarelpaso.com
Change the World...
One Home at a Time...
7365 Remcon Circle El Paso, TX 79912
Builders Outlook MAY 2011 11
Your EPAB Membership can result in
BIG savings at LOWE’SMembers of the El Paso
Association of Buildersenjoy many exclusivediscounts from some of thefinest merchants in thecountry.
For Example:
Members may now receive a 2%discount on purchases using theirLowe’s Accounts Receivable, plusget free delivery on purchases of$500 or more. To be eligible for the discount,members must register their NAHBmembership on LowesforPros.comby November 1, 2011, and make apurchase with their Lowe’sAccounts Receivable by December7, 2011.
For information go to:
www.nahb.org
call 778-5387
Showroom: 2131 Missouri
915 • 533 • 6045 fax • 533• 6096
Thomas R. Brown, Owner
Builders Outlook12MAY 2011
YouR
Plumbing SupplySource in El Paso
44330000 RRoossaa SStt..EEll PPaassoo,, TTXX 7799990055
((991155)) 553322--33991177 •• FFaaxx:: ((991155)) 553322--33991199
� executive officers
Greg bowling, President
Tropicana Homes
del Huit, vice President
Cardel Design Group
frank arroyos, secretary/treasurer
Cisco Homes
sam shallenberger, associates council
Wholesale Supply
Kelly sorenson, immediate Past President
Vision Consultants
ray adauto, executive vice President
El Paso Association of Builders
� couNcil/committee cHairs
Affordable Builders Council Bobby Bowling IV
Associates Council Sam Shallenberger
Assoc. Co-Chair Lance Van Demon
Build PAC El Paso Randy Bowling
Desert Green Building Council Javier Ruiz
Industry Promotions Kelly Sorenson
Land Use Council Linda Troncoso
Sal Masoud
Adams Pro AM Committee David Bogas
Young Designer Award John Chaney
Code Committee Kelly O’Leary
Home Show Sam Shallenberger
Remodelors Rudy Guel
Membership Drive Mike Santamaria
Finance Committee Kathy Carillo
Education Committee Frank Spencer
� advisorY to tHe board
J. Crawford Kerr, Attorney, Firth, Johnson
& Martinez
� board of directors
Danny Andrus, Trinity Homes
John Arranda, Southwest Securities Bank, FSB
Joe Bernal, Joe Bernal Insurance
David Bogas, EPT Communities
Doug Borrett, Karam Co.Edmundo Dena, Accent Homes
Ted Escobedo, Snappy Publishing
Art Garcia, El Paso Door
Juanita Garcia, ICON Custom Home Builder,LLC
Lorraine Huit, Cardel Design Group
Walter Lujan, Dawco Home Builders
Bruce Meyer, JDW Insurance
Robert Najera, Roberts Construction
Kathy Parry, Hunt Communities
Bob Paschich, Oeste Homes
Kathy Rose, Builders Source
Regina Sanchez, Bank of Texas
Sam Shallenberger, Western Wholesale
Frank Torres, GMF Homes
Paul Zacour, Zacour & Associates
� tab state directors
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
� NatioNal directors
Bobby Bowling IV.
Demetrio Jimenez
2010 builder member of the Year
Mike Santamaria
Mountain Vista Builders
2010 Pat cox award
Randy Bowling
Tropicana Homes
2010 associate of the Year
Javier Ruiz
Border Solar/Senercon
John schatzman award
Lorraine Huit
Cardel Design Group
Honorary life members
Brad Roe
Cliff Anthes
Wayne Grinnell
Chester Lovelady
Don Henderson
Anna Gil
Past Presidents
committed to serve
ePab mission statement:
The El Paso Association of Builders is a federat-
ed professional organization representing the
home building industry, committed to enhancing
the quality of life in our community by providing
affordable homes of excellence and value.
The El Paso Association of Builders is a
501C(6) trade organization.
© 2011 Builder’s Outlook
is published and distributed for the
El Paso Association of Builders
by Snappy Publishing
240 Thunderbird • Suite C
El Paso • Texas • 79912 915-820-2800
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Del Huit
Herschel Stringfield
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gill
Bradley Roe
Bob Bowling, III
EH Baeza
NatioNal associatioN of
Home builders
(800) 368-5242
texas associatioN of
builders
(800)252-3625
www.elpasobuilders.com
May 11
Board Meeting
3:30 pm
EPAB Office
May 18
Education
How to read
Financials
1:30-3:30 EPAB
Office
$25.00
May 25
Land Use meeting
12 Noon
EPAB office
May 17 – 20
NAHB Spring
Board Meetings
Washington, DC
June 11
General meeting
Las Vegas,
Nevada
June 23-25
TAB Board
meetings
Houston, TX
RENEWALS NEW MEMBERS
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Caldwell Electrical Contractors
Dawco Home Builders
El Paso Disposal
El Paso Winnelson
Gardner Turfgrass, Inc.
Hardware Specialties
Land-Mark Professional
Surveying, Inc.
Manantial Homes
Remcon Self Storage
Sherwin Williams Paint
Snappy Publishing
Western Wholesale
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Builders Outlook 13MAY 2011
UPCOMING EVENTS
Thanks to our
MAY SODA
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Membership News
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D. R. Horton HomesInc.
Contact: John Svajda
1821 N. Zaragosa, Ste.
207-308
El Paso, Texas 79936
915-503-0153
Romero InsuranceContact: John Romero
1121 Larry Mahan Dr.,
Suite A
El Paso, Texas 79925
915-590-6400
Lake Section WaterCompany
Contact: Bobbie
Rosencrans-Wright
301 Paseo Real Drive
Chaparral, NM 88081
575-824-4731
Crown HeritageHomes
Contact: Lydia Mlouhi
6305 Montana
El Paso, TX 79925
915-778-3022
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
www.elpasobuilders.com
Associates Council
Hi everyone,
This year is really flying by, is it not? We
just got through with the Annual spring golf
tournament which was a huge success, and I
would like to thank John Chaney and the golf
committee for another outstanding job. But
most importantly, I would like to thank all the
members that supported us. I hope everyone
had a good time.
We are gaining on June 10th, the magic day
for our departure to Las Vegas for our June
General Meeting, and a weekend of fun and
relaxation from the daily grind of business. As
you may or may not know, Sun Travel has put
together a great, inexpensive trip, for us via
Southwest Airlines and accommodations at the
world famous Paris Hotel. Yes that is correct
the one with the Effile Tower in front of it. I
hope to see all of you there. We would like to
make this an annual event full of fun and, of
course, a general meeting.
Anyone for bowling? This is always a
popular event when the summer in El Paso is a
100 degrees and the beer is ice cold. Vicki
Marcusse is heading this event up. It’s a great
way to spend an afternoon with friends and
associates. The EPAB Bowl-a-Thon will be
held July 19th at Bowl El Paso. Details coming
soon.
We are in the planning stages for our EPAB
Festival to be held in the parking lot of
Compass Bank across the street from the
EPAB office. If everything goes the way we
plan, we will have Booths for any of our
members who want to show their Products or
Services, an Arts and Crafts Show, and a Car
Show. But the Big Event will be the Menudo
and Chili cook off. This will be held on a
Saturday when there is no UTEP football
game.
The next big event will be the UTEP
Tailgate Party to be held on Saturday
September 29th. It’s UTEP vs. The University
of Houston, and it’s always a blast. This year
promises to be our best ever. We are going to
have a special caterer that has been and still is
an old time El Paso institution in good eats. I
don’t want to tell you who it is right now, but
if you grew up here and ever went downtown
when you were a kid you went to this place. Of
course we will have sodas, bottled water, and a
keg or two.
Last but not least, our first University of
Texas M. D. Anderson Cancer Center Fund
Raising Event. Being held on October 8th at
Western Wholesale, this promises to be a
special evening. There will be several Doctors
attending the event who are world renown in
the area of Cancer Treatment & Research. We
will have three very special Chefs cooking in
three separate kitchens at the same time. There
will be a cocktail hour, and special wines to
enhance the cuisine. For those of you that
don’t know or remember, we have had quite a
few members that have had to fight Cancer and
are still with us today thanks to M.D. Anderson
Cancer Center.
Well, just writing this has worn me out, so if
anyone wants to help out just, give Angie a call
at the EPAB She will get you on the team.
Remember this is YOUR Association, and
YOU get out of it, what you put in to it.
See you in Las Vegas!!!!!!
Safety on the job
Builders Outlook14 MAY 2011
Industry Reports
May is National Electrical Safety Month.
It is a great time to promote a healthy
respect for electricity and increase awareness
of electrical hazards around your work place
and home. Frayed and damaged power cords
on tools are the most common issue we see
on construction jobs.
• Power cords should be inspected
regularly. Frequently, mishandling (such as
pulling a plug from a socket by jerking the
cord rather than removing the plug carefully
by hand) causes the most significant damage
to a cord over time, tearing the external
protective sheathing or detaching it from the
plug head and exposing energized wires.
• Less obvious is the threat posed by
missing ground prongs, the rounded third
prong on electrical plugs. These ground
prongs often break off from mishandling or
are removed intentionally to fit a plug into
two-prong outlets.
Regulations Related to Damaged and
Ungrounded Power Cords
• The Code of Federal Regulations (CFR
1910.303) states that electrical insulation
shall be free from recognized hazards that
cause death or serious physical harm to
employees.
• The Code of Federal Regulations (CFR
1910.334(a) (2) (ii)) requires damaged or
defective power equipment to be removed
from service until repairs are made and tests
show the equipment is safe.
• Missing ground prongs are a violation of
Occupational Safety and Health
Administration (OSHA) regulations and the
National Electric Code. As required by CFR
1910.334(a)(3)(ii), attachment plugs and
receptacles may not be connected or altered
in a manner which would prevent proper
continuity of the grounding conductor.
http://www.compliance.gov/forms-
pubs/eresources/fastfacts_damagedcords.pdf
29 CFR 1910 Subpart S - Electrical
Sam Shallenberger
Western Wholesale
Supply
Lupe AlanizA&E Environmental &
Safety Consultants
Land Use
By Linda Troncoso
The City of El Paso is currently in the
process of preparing a new Comprehensive
Plan for El Paso. The City of El Paso has also
pursued a parallel path to adopt new
amendments to the City’s park, landscaping,
sign, and parking requirements in order to
incorporate walkable community principles.
These changes have included the requirement
for lots to front parks and provide pedestrian
corridors for additional access, increases in
the requirement of parkway and on-site
landscaping for non-residential site
developments, and set maximum limits for
off-street parking requirements for site
developments. These are items that have
come forth to Council in the past month after
vetting to the commercial and residential
development community.
Members of the development community
have continued to express the need to need for
proper vetting by City staff prior to the
adoption of new ordinances and requirements.
City Council members have taken that
message to heart and given specific direction
to staff to reach out to the real estate
community in order to understand the impact
of proposed requirements to all parties. We
look forward to the continued opportunity to
participate in these processes.
New changes which impact our industry are
occurring on a regular basis. As such, we
encourage everyone to actively participate in
the standing Land Use Council meetings on
the fourth Wednesday of each month at noon
at the EPAB offices. We hope to see you on
May 25, 2011.
REALTOR/Builder
We’ve all heard about Facebook, LinkedIn,
and more. But where do you start and what do
you do?
Try something simple. Put a small 2-5
minute video together to describe how to do
small home fixes to teach the general public.
Below are some suggestions to start with:
• How to turn off your water in the case of
a leak or pipe bursting.
• What to do when you smell gas in the
home
• How to put together an automatic
sprinkler system
• What to do when you are missing power
in one part of your house
• How to switch your heater to evaporative
cooler and back
• Calling the utility companies with 811
when you are getting ready to landscape
your yards
• How to put out a grease fire in the kitchen
• How to turn on your gas fireplace
• How to let out pressure in your gas water
heater
• How to fix a leak or running toilet
These are a starting point for posting
videos. You can also put up events with your
pages for different open houses, REALTOR
parties, Grand Openings, etc. With events,
you want to create them for special occasions
and refrain from putting your daily events.
Another item to put is a photo gallery of
your model homes to allow potential clients to
view your homes. This allows a client to view
your homes with a free website. If you are not
especially internet savvy, just ask your
teenager to put your page together. They will
have it done in no time.
Facebook can be used to create interest and
value with potential clients about your homes.
It is a great avenue to advance your company
image with free home owner education. A
wonderful benefit is that if your “followers”
or “fans” like your postings they can share
them with their “friends.” Your videos and
photo albums have the potential of not only
being seen by your “fans” but also anyone
who is “friends” with your “fans.” It’s as easy
as sharing a link from a website. You can also
post the videos in Spanish to reach the other
half of our El Paso population.
LinkedIn is used for professional
networking. This is a better place to recruit
REALTORS, Subcontractors, Mortgage
Companies, etc. In LinkedIn, you can post
events that cater to the real estate community.
Good luck with your pages, postings, and
videos! I am eager to share your videos on my
work Facebook page.
May Meeting: 5/19/11 from 12-2PM at the
Greater El Paso Association of
REALTORS®.
Speaker will be Carefree Homes. Their
Education Topic will be HVAC and Building
an Energy Star Certified Home.
Fostering harmony amongst home builders,
real estate professionals, and affiliate
companies
Angela Ochoa
GEPAR
Sal Masoud
Linda Troncoso
General
Meeting
April 13 was the date and Vista Hills CC
was the location for our bi-monthly general
membership meeting. An overflow crowd
gathered to share news about the industry
and to visit with friends and competitors. A
presentation by Paul Coleman, President of
Sun Travel, on the upcoming Las Vegas trip
gave the audience a glimpse of what to
expect when one visits Sin City, Las Vegas,
Nevada. Paul gave us tips on shows and
events and how to make plans for those
extra little things you might want to do
while in Vegas. He shared some quick tips
including making sure you get your
reservation well in advance of your
intended visit. Las Vegas shows are
plentiful, but they are also very popular and
those like Cirque du Solie or Jersey Boys
sell out fast. Mr. Coleman also reminded us
to book our trip with time so that you can
take advantage of lower airfares. Recent
increases in jet fuel are making flying more
expensive and booking early is the only
way to go. The pictures on this page show
a sampling of who was at the event. We
look forward to seeing you at the next
general membership meeting in Las Vegas
on June 11. For information on that trip see
the ads in this issue.
EPAB ON THE SCENE
Join the El Paso Association ofBuilders for our General MembershipMeeting in Las Vegas, NV June 10-12,2011
Call 778-5387 for more information
Vegas Baby!
Travel Arrangements
by Sun Travel
Isabelle Caballero
747-3055